The information that follows applies to the current year for Revis and Patrica, a married couple. • Revis is employed as a shoe salesman; his compensation is $65,000.
• Patrica is employed as an interior designer; her compensation is $90,000.
• Revis and Patrica have total allowable itemized deductions of $15,000.
• Revis and Patrica have two dependent children.
• Revis and Patrica have other economic income as follows: - Interest on U.S. Treasury bonds $1,000. - Interest on French government bonds $750. - Interest on City of Miami, Fla. bonds $1,200. - Patrica won $500 from the state lottery - Revis's wealthy uncle dies and leaves him $10,000. - Patrica sold Revis's baseball card collection for $3,000. Revis bought it for $800. - Patrica sells Revis's fishing boat for $2,000. Revis had purchased the boat for $2,500. Based on the above information, what is Revis and Patrica 's taxable income?

Question

Quizplus · Accepted Answer

Revis and Patrica's total income includes salaries ($155,000), interest from U.S. Treasury and French bonds ($1,750), lottery winnings ($500), and capital gains from the baseball card sale ($2,200). The boat sale results in a capital loss ($500). The inheritance is not taxable. Total income is $158,950. After subtracting itemized deductions ($15,000) and the standard deduction for married filing jointly ($27,700 for 2023), taxable income is $128,850.

The Information That Follows Applies to the Current Year for Revis